Lending & Credit Decisioning · Use case

Build a credit card programme on modern rails

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Short answer

A credit card is two products in one: a card programme and a revolving credit line. The lending side supplies underwriting, limits, interest, statements and collections; the card issuer supplies the card and authorisations — they must share one view of the available credit.

What this use case is

A credit card is two products in one: a card programme and a revolving credit line. The lending side supplies underwriting, limits, interest, statements and collections; the card issuer supplies the card and authorisations — they must share one view of the available credit.

Who builds this

Neobanks
Co-brand partners
Specialist credit card issuers
Corporate charge card products

What your customer sees

  1. 1Applies and gets a limit
  2. 2Spends with the card
  3. 3Receives a monthly statement
  4. 4Repays in full or over time

How Lending & Credit Decisioning solves it

1

Application and underwriting

Application and underwriting

2

Credit limit set on the ledger

Credit limit set on the ledger

3

Card issued by the card partner

Card issued by the card partner

4

Authorisations checked against available credit

Authorisations checked against available credit

5

Monthly statement with interest and minimum payment

Monthly statement with interest and minimum payment

6

Repayments collected; arrears managed

Repayments collected; arrears managed

Want to have

  1. Underwriting
  2. Revolving credit ledger
  3. Interest and fee engine
  4. Statement generation
  5. Integration with the card issuer's authorisations
  6. Repayments and collections

Optional

  1. Instalment plans on card purchases
  2. Credit limit management
  3. Rewards integration

Design decisions

Architecture

One provider for card and credit
Separate card issuer and lending engine

simplicity versus flexibility.

What to put in your RFP

Credit

  • underwriting
  • limits
  • interest

Card link

  • available-credit sync

Statements and notices

  • Statements and notices

Collections

  • Collections

Lender of record

  • Lender of record

Commercials

  • Commercials
Add these to an RFP

How to evaluate providers for this use case

  1. 1Live revolving credit programmes
  2. 2Integration with your issuer
  3. 3Statement and notice quality

Pitfalls

  • Available credit out of sync with authorisations
  • Lender of record unclear
  • Underestimating statement and notice requirements

What providers will ask you

  1. Markets
  2. Target customers and limits
  3. Lender of record
  4. Funding

Other Finlane categories that cover parts of this

This use case is solved mainly with Lending & Credit Decisioning. These categories cover specific parts of it and can be tendered alongside it.

Card Issuing

The card programme and authorisations

Core Banking & Ledger

The credit ledger

Fraud & AML Monitoring

Application and card fraud

Frequently asked questions

Solving this with another category instead? See Enable rewards, cashback or credit lines on card

Other Lending & Credit Decisioning use cases

Launch an embedded BNPL product

Offer split-pay or installment credit at checkout with decisioning, disbursement and servicing bundled.

Underwrite SMB working capital

Combine open banking, accounting and bureau data to score SMBs and originate flexible credit lines.

Service consumer loans end-to-end

Handle amortization schedules, repayments, hardship flows, statements and collections.

Scope build a credit card program on modern rails with Lending & Credit Decisioning providers

Scope this use case